Top Reasons to Automate Accounts Payable
Although technology makes Accounts Payable payment automation a standard for numerous organizations, 60 % of corporations in the United States do not know of the numerous benefits associated with A/P automation. Leveraging software to implement the process in manner that is seamless and convenient, here are our major 5 reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, accordingly eliminating estimation. With greater transparency from A/P automation, awareness into the system allows your A/P department to concentrate on activities and things that can effect your department with value add activities.
Strengthen internal controls
A manual A/P process is susceptible to fraudulent activity. You multiply the risks of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that put a stop to and discourage fraudulent activity.
The outdated manual process suffers more info from insufficient awareness, through which can result in neglecting to identify a segment of liabilities. This may understate operating expenses thereby overstate income, which can contribute to accounting and reporting abnormalities and ultimately fraud. A/P automation provides a complete audit trail of each and every step in the process, and allows management to promptly deal with possible troubles.
Your vendors want a more effective payment process. Easier payments result in savings and cost savings for you. Whenever you pay your customers via virtual credit card, which is an individual issued credit card for a one-time use, you will earn monthly cash rebates. It’s collectively beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and unneeded costs with an automated A/P process. A/P problems can be very expensive and take many resources to manually fix. With payment automation, you see where, when and why mistakes took place. In contrast to the manual procedure, with automation you’ll be able to methodically address and reduce errors to improve quality.
A/P payment automation can help you save cash, earn you extra income, decrease the risks of fraud, bring your operations increased transparency, meet your customers’ needs, and improve the overall quality of your A/P processes.